Mortgage and refinance rates today, December 21, 2024: Rates are unsteady

Mortgage rate movements are a bit volatile today, for example, according to Zillow the average 30-year fixed rate increased by four basis points to 6.67%and the 15-year fixed rate is five basis points 6.03%. On the other hand, the 20-year fixed rate fell by 11 basis points to 6.52%.

This may be a trend for a while, with occasional ups and downs, with a few sharp changes. Mortgage rates aren’t expected to go down anytime soon, so if you’re ready to buy a home, consider buying now you can always refinance your loan in a few years if interest rates drop significantly.

Dig deeper. Need to Buy a Home: How to Know if You’re Ready

Here are current mortgage rates according to the latest data from Zillow:

• Fixed for 30 years. 6.67%

• Fixed for 20 years. 6.52%

• Fixed for 15 years. 6.03%

• 5/1 ARM. 6.71%

• 7/1 ARM. 6.60%

• 30 year old VA. 6.07%

• 15 year VA. 5.57%

• 5/1 VA. 6.32%

Remember, these are national averages and are rounded to the nearest hundredth.

Learn more. 5 Strategies to Get the Lowest Mortgage Rates!

These are today’s mortgage refinance rates, according to the latest data from Zillow.

• Fixed for 30 years. 6.71%

• Fixed for 20 years. 6.33%

• Fixed for 15 years. 5.95%

• 5/1 ARM. 5.93%

• 7/1 ARM. 6.65%

• 30 year old VA. 6.08%

• 15 year VA. 5.84%

• 5/1 VA. 5.67%

Again, the figures are national averages, rounded to the nearest hundredth.Mortgage refinance rates are often higher than when you buy a home, although this is not always the case.

Use Yahoo Finance for free! mortgage calculator see how different interest rates and term lengths will affect your monthly mortgage payment. It also shows how the price of the home and the amount of the down payment play into things.

Our calculator includes homeowners insurance and property taxes in your monthly payment estimate, and you even have the option to enter expenses private mortgage insurance (PMI) and homeowner association dues, if they apply to you.These details result in a more accurate monthly payment estimate than if you just calculated your mortgage principal and interest.

There are two main advantages of a 30-year fixed mortgage. Your payments are lower and your monthly payments are predictable.

A 30-year fixed-rate mortgage has relatively low monthly payments because you spread your repayments over a longer period of time than, say, a 15-year mortgage. won’t change Most years, the only thing that can affect your monthly payment is your changes home owners insurance or property taxes.

The main disadvantage of 30-year fixed mortgage rates is mortgage interest — both in the short term and in the long term.

A 30-year fixed term comes with a higher interest rate than a shorter fixed term, and it’s higher than the initial rate of a 30-year ARM. The higher your rate, the higher your monthly payment, too you’ll pay a lot of interest over the life of your loan, both because of the higher interest rate and the longer term.

The pros and cons of 15-year fixed mortgages are basically replaced by 30-year rates. Yes, your monthly payments will still be predictable, but another advantage is that shorter terms come with lower interest rates. Not to mention, your mortgage is 15 years you will die soon. This way, you can save hundreds of thousands of dollars in interest over the life of your loan.

However, since you’re paying the same amount in half the time, your monthly payments will be higher than if you chose a 30-year term.

Dig deeper. 15-year vs. 30-year mortgage

Adjustable rate mortgages For example, with a 5/1 ARM, your rate stays the same for the first five years and then goes up or down once a year for the remaining 25 years.

The main advantage is that the introductory rate is usually lower than what you’d get with a 30-year fixed rate, so your monthly payments will be lower. are low. Talk to your lender before deciding between a fixed or adjustable rate).

With an ARM, you have no idea what mortgage rates will be once the intro rate is up, so you run the risk of raising your rate later.This can end up costing you more, and your monthly payments are unpredictable from year to year.

But if you plan to move before the intro rate expires, you can reap the benefits of a lower interest rate without risking a rate hike.

Learn more. Adjustable Rate vs. Fixed Rate Mortgages

First of all, now is a relatively good time to buy a home compared to the last few years. Home prices aren’t going up like they were at the height of the COVID-19 pandemic, so if you want or need to buy a home soon, you should feel good about the current climate.

Also, mortgage rates are predicted to drop sharply in 2025, as people expected a few months ago.With prices now fluctuating and competition less fierce in the winter months, it could be a good time to buy.

Read more. What’s more important, your home price or your mortgage rate?

According to Zillow, the national average 30-year mortgage rate is currently 6.67%, but keep in mind that averages may vary depending on where you live may be higher.

Mortgage rates are expected to drop significantly by the end of 2024, although they may dip here and there.

Some mortgage rates are going down and others are going up.In any case, the changes are not significant today.

In many ways, securing a low mortgage refinance rate is similar to buying your home.Try to improve your credit score and lower your credit score debt-to-income ratio (DTI). Refinancing for a shorter term will also net you a lower interest rate, although your monthly mortgage payments will be higher.